Innovation Measurement During Organizational Constraints: Opportunities and Challenges.

Abstract

Businesses across the world compete to maintain market leadership, with innovation playing a central role in long-term competitiveness, growth, and resilience (Bouncken et al., 2024). For this reason, innovation is also prioritised by institutions such as the European Union through initiatives like the EU Green Deal and the EU Innovation Fund. Despite this, many organisations struggle to measure innovation effectively. Without credible measurement practices, innovation becomes difficult to justify financially, particularly during economic constraint. This study examines how the quality of innovation measurement influences innovation outcomes in a large organisation during financial pressure and governance constraints. Drawing on qualitative interviews, observations, and innovation theory, the findings reveal fragmented definitions of innovation, inconsistent expectations across organisational levels, lack of measurement ownership, and a tendency to deprioritise innovation during financially difficult periods. The study concludes that improving innovation measurement requires structural alignment and outlines recommendations for strengthening innovation processes and making innovation more visible, defensible, and sustainable.